Air France-KLM: weighed on by broker comments
(CercleFinance.com) - The Air France-KLM share is down about 5%, following comments by Credit Suisse, which reaffirms its "underperform" rating on the share, while reducing its target price by 15% to 2.
At the sector level, the broker says that it now expects a 65% decline in business travel traffic in 2021 compared to 2019, while only forecasting a gradual recovery of 10%-20% by 2024.
"With c.30-35% of AF-KLM passenger revenue driven by corporate traffic in 2019, this outlook is particularly stark for AF-KLM", the broker warns, which has raised its forecast for a 2021 EBIT loss from 706 million euros to 1.7 billion euros.
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